US President Donald Trump has blocked the $140 billion takeover bid of Qualcomm by Broadcom citing national security concerns.

President Donald Trump has officially declared that the proposed acquisition has been prohibited due to national security grounds. The president stated that "there is credible evidence" which suggests that Broadcom’s acquisition of San Diego-based Qualcomm "might take action that threatens to impair the national security of the United States."

The announcement can after a letter was issued by the U.S. Treasury's Committee on Foreign Investment (CFIUS) on March 5 that referred to a number of issues regarding Broadcom's reputation.